Demand for communications ICs to outstrip computer applications

Demand for integrated circuits is to see a ‘major shift’ according to analysts, as communications applications outstrip demand for computers.

According to semiconductor industry analysts IC Insights, the market for communications ICs will move ahead of demand for computer applications by 2014, reaching $160 billion by 2016.   

The market is set to grow 9.2 percent this year to $90 billion, an increase from $82.4 billion in 2011.   In 2013 the market is forecast to reach $100.5 billion, before outpacing the computer IC market when it hits $114.4 billion in 2014.

Meanwhile demand for computer ICs has fallen.  The market was worth $110.2 billion last year, dropping to an estimated $100.7 billion this year.

IC Insights forecasts that the figure will then rise over subsequent years, reaching $128.5 billion in 2016.   This will not be enough to keep up with the burgeoning communications market, with the PC market stalling.

Recent figures from analysts IHS iSuppli have shown that the overall market for PCs is set to fall during 2012 for the first time in ten years.

Intel meanwhile missed its targets for the recent quarter, with a drop in demand for its PC chips hitting revenues and profits, while rival AMD has also suffered from slowing demand.